• Net income down 0.1%
  • Sales down 27.3% on 2008
  • Beverage division sales down

Wimm-Bill-Dann, the Russian drinks and dairy group, has reported a drop in sales and seen net profits dented by devaluation of the ruble in the first nine months of 2009.

Net income in US dollars dipped 0.1% to US$109.4m for the period ended 30 September, compared to the same period of last year, the company said today (25 November).

On a constant currency basis (in rubles), net income increased by 33.1% year-on-year in the first nine months of the year.

Sales fell by 27.3% to reach US$1.59bn, while operating income dropped by 8.5% to $1.77m.

The company's beverage division saw sales drop 18.5% to $303.4m in the first nine months, as the negative exchange rate partially offset good volume growth.

The average dollar selling price decreased 20.7% to $0.75 per litre. Gross margins in drinks increased slightly due to lower concentrate costs.

Tony Maher, Wimm-Bill-Dann's CEO, said: "For almost two years now Wimm-Bill-Dann has been demonstrating margin improvement and market share gains. This is no small achievement and is a result of our continued focus on streamlining our business and enhancing consumer loyalty."

Click here for the full earnings release.

For an update, following the group's conference call, click here.